3 Questions
What happens when an invoice is marked as paid?
It can no longer take on another status
What happens when an invoice is voided?
It can still be looked up by number
What can you do with a draft invoice?
Delete it
Study Notes
- An invoice moves through different statuses from the time it’s created to when it’s paid.
- Draft invoices are still editable and remain unsent.
- Open invoices and paid invoices are terminal, which means that they can never take on another status.
- Voided invoices are conceptually similar to deleting (canceling) them. However, voiding an invoice maintains a paper trail, which allows you to look up the invoice by number.
- Uncollectible invoices are sometimes your customers won’t be able to pay their outstanding bills.
- You can mark an invoice as paid, void, or uncollectible.
- You can delete a draft invoice at any time.
Test your knowledge on the lifecycle of an invoice and its various statuses, including draft, open, paid, voided, and uncollectible. Learn about the implications and actions associated with each status.
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